Invoicing in Spain
VAT invoices in the European Union function similarly to tax receipts. They serve as the formal documentation of the amount of tax that has been charged and collected, thereby providing the definitive evidence of the tax amount due to the government.
Learn all about Invoicing requirements in Spain in our comprehensive guide below.
Full VAT invoice
Invoices must include the following fundamental data:
Full VAT invoice
- Date of issuance.
- Supplier data (company name, address, tax number.
- Customer data (address and other data if available, tax number).
- A unique, sequential number of the invoice.
- Full description of goods and services provided.
- Quantity of goods and services provided.
- Net price per unit.
- The taxable value of the invoice, net amount.
- Any discounts, ancillary costs, and expected expenses (if applicable).
- Rate and amount of VAT applicable for the category of goods and services provided.
- The invoice total, the gross amount.
Selling in Spain?
Simplified Invoice
Simplified invoices, often referred to as tickets, can be issued for documenting specific transactions. Generally, input VAT cannot be claimed from these simplified invoices unless additional information is supplied. The circumstances in which simplified invoices can be issued include:
- When the invoice amount is less than EUR 400 euros (VAT included).
- When corrective invoices are required.
Simplified invoices are also permissible when the invoice amount does not exceed EUR 3,000, inclusive of VAT. These are typically used to document transactions such as:
- Sales in the retail sector (i.e. sales made to a non-taxable person for its consumption).
- Sales at the ultimate consumer’s residence.
- Sales in an ambulance.
- Passenger and baggage transportation.
- Restaurant and hotel services, as well as food and beverages for direct consumption.
In Spain, VAT invoices must be issued within a six-month period following the delivery of the product or service. Subsequently, these invoices are required to be retained electronically for a duration of ten years. Although this might seem like an extensive period, it is essential to keep them on hand for potential examination by tax authorities who may wish to review your tax records.
E-Invoicing in Spain: Key Insights and Requirements
Electronic invoicing, or e-invoicing, is becoming an integral part of the business landscape in Spain. While generally optional for most transactions, it is mandatory for business-to-government (B2G) transactions.
This requirement is mandated under Law 25/2013, which aligns with the EU Directive 2014/55/EU on electronic invoicing.
Mandatory B2G E-Invoicing
- B2G Transactions: Electronic invoicing is mandatory for B2G transactions in Spain. However, invoices with a value of less than 5,000 euros or those issued by suppliers located abroad are exempt from this requirement.
- Format and Signature: B2G invoices must be submitted in XML format, known as “FacturaE,” and must include an electronic signature to ensure authenticity and compliance.
Experience a seamless, secure, and compliant e-invoicing process with our comprehensive e-invoicing solution. Learn more by clicking here.
Platforms for Submission
- FACe Platform: B2G invoices are submitted through the FACe platform, a centralized system designed to streamline the invoicing process with state entities.
- FACeB2B Platform: For business-to-business (B2B) transactions, invoices can be submitted via the FACeB2B platform.
Electronic Invoicing for B2B Transactions
While electronic invoicing is not currently mandatory for B2B transactions, businesses can voluntarily utilize the FACeB2B platform to enhance their invoicing efficiency and ensure compliance with future regulations.
Upcoming Changes: Royal Decree 1007/2023
Under Royal Decree 1007/2023, dated December 5, 2023, significant changes are coming into effect on July 1, 2025:
- Certified Billing Software: Spanish businesses that use computerized billing systems, and are not subject to Real Time Reporting (RTR) requirements, must adopt certified billing software. This software must meet specific standards and be capable of issuing invoices and generating records in a structured XML format for real-time transmission to the State Tax Agency.
Language and Currency Considerations
- Language: Invoices in Spain can be drafted in any language. However, the Spanish State Tax Agency may require a Spanish translation for official purposes.
- Currency: Invoices can be expressed in any currency, but the Value Added Tax (VAT) amount must be clearly stated in euros.
Key Takeaways
- B2G E-Invoicing is Mandatory: All B2G invoices, with certain exceptions, must be issued electronically through the FACe platform in XML format with an electronic signature.
- Upcoming Software Requirements: From July 1, 2025, businesses must use certified billing software to comply with new regulations.
- Language and Currency Flexibility: Invoices can be in any language and currency, with VAT expressed in euros.
By understanding these requirements, businesses can ensure compliance and streamline their invoicing processes in Spain. For more detailed information, schedule a call with one of our experts.
Last Updated: 07/08/2024
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
